By Dawn Kristof
I had the pleasure of attending and speaking at the National Association of Water Companies' 105th Annual Conference recently held in Scottsdale, AZ. Several hundred investor-owned water company officials, public utility commissioners and consulting engineers spent three days discussing the challenges confronting the water utility industry, from global warming and global competition, to water security and infrastructure financing.
The sessions were robust and the spirits were uplifting. I noticed a general sense of purpose and pride exuding from these water quality professionals as they looked to the future and the critical role they will play in providing a safe and abundant supply of water for generations to come.
On the matter of water security, everyone agreed that the shift from assessing vulnerabilities to investing in security enhancements was about to begin, although opinions differed on who should pay for what some viewed as "unfunded mandates." It was encouraging to discover that most investor-owned water companies felt the responsibility, ultimately, was theirs to provide immediate protection for their customers.
"If we wait until EPA orders us to make these investments and Congress gives us the money to do it, it will be years in the making and could put public health at risk," was a common sentiment expressed by Jim Barr, chairman of American Water Works Company. "The buck stops here and the buck starts here" was another comment used to describe how water utilities have accepted ownership of this problem and the reality that the cost must ultimately be borne by the end users. It was further agreed that any water utilities that fail to take the necessary steps to address those security weaknesses, identified in their assessments in a timely fashion, would be placing themselves in a highly vulnerable position, both from a consumer protection and insurance liability perspective.
Regarding the consumer, most concurred that a national campaign to educate the public on the cost of providing a safe and abundant water supply was urgently needed in anticipation of future rate increases. Dr. Janice Beecher of Michigan State University suggested "rolling flushouts" as a way to sensitize the public to the importance of water, similar to that achieved by the rolling blackouts in the electric utility industry. Her witty comments illuminated the severity of the challenge facing every water utility in trying to heighten consumer awareness of the need for inevitable rate hikes in the future.
A panel of public utility commissioners offered their views of other challenges facing the water industry, and their states in particular, including meeting the new drinking water standards; rehabilitating aging water infrastructure; consolidating smaller systems; providing quality service; providing affordable service for all consumers; finding alternative water sources; and conserving water in drought-stricken areas.
On the subject of water shortages, David Pearce Snyder, a consulting futurist, alerted the audience to the fact that five out of the six fastest growing states in the U.S. are prone to water shortages and that lack of water presents the greatest threat to the human population. He further stated that according to recent U.S. Department of Labor Statistics, the water and sewage industry will be among the top 10 fastest growing industries in America over the next 10 years.
Internationally, John Napier of Kelda Group PLC noted that the U.S. has four times the population of England and France, yet is home to only one of the world's top 10 water companies, with American Water Works Company about to be acquired by RWE, a German interest. He questioned whether America's fragmented structure and resistance to foreign ownership will hinder its ability to maintain its infrastructure. However, he did acknowledge that "it would be unthinkable in such an advanced country with a massive culture of achievement that the U.S. will be caught by unresolved water supply and wastewater treatment issues."
Michael Chesser of United Water described his company's role in bringing value to the U.S. market, both in economic savings, customer service, community investment and private sector R&D. He observed that Suez spends more on water and wastewater R&D that the entire U.S. Government. The challenge, he noted, was one of building trust.
Bill Alexander of Thames Water stated that his challenge will be to turn American Water Works Company into a company of choice for the whole of the Americas. He further opined that global companies are needed to solve global problems, recognizing that governments cannot provide the capital necessary, nor recruit the quality of individuals needed, for the task.
In his concluding remarks, Snyder observed that "We in the water industry have the ability to shape the future destiny of the world!" Having had an opportunity to hear from some of the industry's best at this conference, I am confident that the world is in good hands.
About the author: Dawn Kristof is president of the Water and Wastewater Equipment Manufacturers Association. WWEMA was established as a national trade organization in 1908 and represents the nation's leading producers of water and wastewater technologies used in municipal and industrial applications worldwide.
